Guided by Long Term Care Insurance Studies
After conducting a long term care insurance research, I have finally realized that there are only two things that I have to do to ensure I will get quality care someday without shelling out more than what I can afford.
First, I have to search for a stable company that sells long term care insurance (LTCI). There are a lot of insurance companies specializing in LTCI alright, but there is no denying the obvious fact that there are also numerous firms out there that suddenly shut down after having collected huge annual premiums from their unsuspecting clients.
Secondly, I have to invest into an LTCI policy while I am in my 30s. I have read many articles from different authors advising people to buy their policy as soon as they hit the age of 50 as this is the ideal age. I vehemently disagree because you cannot be very confident of the state of your health by the time you reach 50. Lucky are those who have reached this age without manifesting the slightest change in their health. Then again, not everybody was born lucky.
I say 30 is the best age to purchase an LTCI policy because at this very tender age one is still strong, healthy and capable of bearing possible premium increase in the offing. If I would start paying for an LTCI policy at the age of 50, how can I possibly maintain my annual premium if say the insurance company that sold me the policy decides on a premium hike 16 years later exactly at the time I just retired?
I’m not saying that I have no plans of saving up. Course, I do as this is part and parcel of long term care (LTC) planning, but the message I want to get across is that people invest in LTCI for security reasons and not to overhaul their lives.
Paying $6,000 annually for an LTCI policy is like getting myself admitted into a nursing home even before I have qualified for LTC. Obviously, this is an exaggeration as my long term care insurance research revealed that most nursing homes these days would cost you $84,000 per annum or $7,000 a month. What I want to point out is that why would I want to pay so much for an LTCI policy if I can shell out only $500 or even less every year for my policy?
By putting your money on LTCI at a younger age, you’re less likely to feel the pangs of a premium increase if ever there will be. If nothing like this occurs then good for you. Another good thing about buying an LTCI policy early on in life is that you can enjoy bigger insurance benefits in the future especially with a 5% compound annual inflation protection integrated into your policy.
It’s true what they say that a 5% compound inflation protection will cost more in annual premium than the simple inflation protection. But then, we’re talking about a 30-year-old investing in LTCI and not a 50 or 60-year-old.
After conducting a thorough long term care insurance research I have figured that the only way to get an LTCI policy without spending a chunk of your hard earned money is to buy one at a very young age.
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